MIDDAY MARKETS: Techs shrug warnings

Technology stocks shook off another round of profit warnings in the communications chip sector at midday Monday. The Nasdaq rose 27.08 points to 2,144.71, and the Dow Jones industrial average gained 56.61 points to 10,522.92.

The Inter@ctive Week @Net Index rose 4 points to 210.91.

Two more chipmakers warned of slowing sales growth Monday. Vitesse Semiconductor and LSI Logic reduced forecasts for their upcoming quarters, blaming continued weakness from communications and data-storage customers.

The economic slowdown has also trickled down to Cypress Semiconductor (NYSE: CY), which said it would fall short of revenue expectations for the first quarter.

Amazon (Nasdaq: AMZN) was one of the day's big gainers, up $2.38 to $12.38, or 24 percent on speculation it would strike a deal with Wal-Mart (NYSE: WMT), up 9 cents a share to $51.19.

AOL Time Warner (NYSE: AOL) rose $1.29 to $43.35, and Yahoo (Nasdaq: YHOO) gained 38 cents a share to $22.06.

Cisco Systems (Nasdaq: CSCO) rose 81 cents a share to $23, Intel (Nasdaq: INTC) gained $1.25 to $30.56, Oracle (Nasdaq: ORCL) added 13 cents to $17 and Microsoft (Nasdaq: MSFT) was up $1 to $57.69.

ZDII staff and Reuters contributed to this roundup.